Indiana to Collect Internet Sales Tax

January 11, 2012byDaniel Ford

Yet another state—this time, Indiana—has decided to collect sales tax from consumers who purchase items off the Internet.

Indiana Gov. Mitch Daniels announced Jan. 11 that his state and e-commerce giant Amazon had reached an agreement to collect sales tax beginning Jan. 1, 2014, or 90 days from the enactment of federal legislation, whichever comes first. The state will not assess the company for sales tax for other periods.

Daniels said in a statement he believes the question should be settled on the federal level.

“The only complete answer to this problem is a federal solution that treats all retailers and all states the same,” he said. “But for now, Amazon has helped us address the largest single piece of the shortfall, and we appreciate the company working with us to find a solution.”

Indiana’s State Budget Agency and Department of Revenue estimate that revenue from sales tax remittal by Amazon would be approximately $20 million to $25 million per year.